Last year marked a turnaround in the fortunes of the £4.32bn frozen food sector which, according to The Grocer's most
recent Top Products Survey, recorded value growth of 1.4%.
The sector has been helped by a strong push from brands such as Birds Eye, Young's Seafood, Aunt Bessie's and McCain, which have boosted sales in frozen fish, potatoes, and desserts thanks to a greater focus on health and convenience as well as strong TV advertising. Only frozen ready meals and pies have taken a hit in the past year.
Independent frozen food retailers have been working hard to make the most of
increased consumer interest in the
category.
Cook, which sells premium frozen ready meals, has expanded out of its traditional format by offering independent retailers products to sell in dedicated Cook-branded fixtures, for example. This approach has proved so successful that it opened a new £2.5m factory in Kent in September as part of its plans to grow the business. Last month the retailer revealed it was seeking new sites in the south east of England to expand its 21-strong estate.
Discount frozen food operators are also faring well. Farmfoods, which operates more than 300 stores across the UK, was the highest-ranked food and drink company in The Sunday Times' Top Track 250 ranking of Britain's biggest mid-market private companies published last November. The frozen food retailer was ranked at number four in the list with sales of almost £401m and profit of £6m in 2005.
The biggest competitor in the sector is Iceland, which is also reaping the rewards of renewed interest in frozen. The retailer had a successful Christmas, clocking up sales growth of 7.4% in the 12 weeks to 30
December, according to TNS Worldpanel data. n
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